Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Overnight Markets: US stocks gain on budget deal optimism

Overnight Markets: US stocks gain on budget deal optimism

Wall Street advanced on Monday in response to better-than-forecast housing data and a positive atmosphere surrounding talks to tackle the U.S.’s fiscal crunch.

The Dow Jones industrial average gained 208 points, or 1.65%, at 12,796. The Standard & Poor's 500 Index was up 27 points, or 1.99%, at 1,387. The Nasdaq Composite Index was up 63 points, or 2.21%, at 2,916.

Shares advanced as policymakers expressed confidence that a deal could be reached to stave off the looming "fiscal cliff," a raft of tax and spending changes that will begin to take effect next year.

 “I am confident we can get our fiscal situation dealt with,” U.S. President Barack Obama said yesterday at a news conference in Bangkok, where he began a three-nation Asian trip. Obama met with senior Democrats and Republicans on 16 November for talks to avoid the situation.

Sentiment was boosted further after housing data showed sales of previously owned U.S. homes surged in October and confidence among U.S. homebuilders unexpectedly climbed in November to a six-year high. Home Depot Inc., the biggest U.S. home-improvement retailer, gained 2%.

Stronger-than-expected earnings from Lowe's Cos Inc and Tyson Foods Inc also contributed to the market's advance. Shares of Lowe's jumped 6.2%. Tyson Foods added 10.9%.

Elsewhere, Intel shares edged higher, up 0.3% after the company said its chief executive will retire in May.

Resource companies also gained after commodities prices surged. Freeport-McMoRan rose 4.1%, while U.S. Steel rose 5.3%. Newmont Mining added 1.5%, while Occidental Petroleum Corp. gained 2.2%.

In deal news, Cisco Systems Inc. increased 1.7% as it agreed to buy closely held Meraki Inc. for $1.2 billion.

In Asia, shares gained on Tuesday as strong U.S. home sales boosted optimism in the world’s largest economy.  

The MSCI Asia Pacific Index gained 0.4% to 122 as of 11:31 a.m. in Tokyo. Japan’s Nikkei 225 Stock Average rose 0.1%. The Bank of Japan is unlikely to take any action today at the end of its two-day policy meeting. Australia’s S&P/ASX 200 Index gained 0.5%. South Korea’s Kospi Index climbed 0.6%. Hong Kong’s Hang Seng Index advanced 0.9%, while China’s Shanghai Composite Index added 0.1%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Dispelling the sustainable investing myths

Dispelling the sustainable investing myths

There's a bit of a buzz around sustainable investing at the moment. We speak to three wealth managers to find out what they think.

Play Inside ETFs: positioning for the Fed rate rise

Inside ETFs: positioning for the Fed rate rise

Natalie Fast discusses how investors are using ETFs to position for a rate rise with guests Irene Bauer from Twenty20  Investments and Markit's Simon Colvin.

Play Wealth Manager Retreat: video highlights

Wealth Manager Retreat: video highlights

The UK's leading wealth management talent gathered at our annual event at the Grove celebrate the best in private client portfolio management.

Wealth Manager on Twitter